Total Rewards and Compensation Flashcards
7 cards from real CHRP practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 7 Total Rewards and Compensation flashcards as text
Which executive compensation component is designed to align long-term executive interests with shareholder value and typically vests over multiple years?
Answer: Restricted stock units (RSUs)
RSUs vest over time and tie executive wealth to company stock performance, aligning executive and shareholder interests over the long term.
Under the Affordable Care Act (ACA), large employers must offer affordable health coverage to full-time employees or face a penalty. What is the ACA's definition of a large employer?
Answer: 50 or more full-time equivalent employees
The ACA's employer mandate applies to Applicable Large Employers (ALEs) with 50 or more full-time equivalent employees.
A merit matrix used in annual pay planning ties merit increase percentages to both performance rating and an employee's position in range. What is the rationale for giving lower increases to high performers at the top of their range?
Answer: To slow salary progression as pay approaches market maximum
Employees near the range maximum already earn at or above market; smaller increases prevent pay from exceeding the structure's ceiling while still rewarding performance.
Which type of health plan typically requires employees to use a network of providers and obtain referrals from a primary care physician?
Answer: Health maintenance organization (HMO)
HMOs require members to select a primary care physician who coordinates care and provides referrals to specialists within the plan's network.
Which job evaluation method assigns points to compensable factors such as skill, effort, responsibility, and working conditions to determine job worth?
Answer: Point-factor method
The point-factor method quantifies compensable factors by assigning point values, and total points determine the relative worth of jobs.
Pay transparency laws that require employers to post salary ranges in job listings are primarily intended to address which issue?
Answer: Closing gender and racial pay gaps
Salary range disclosure laws aim to reduce pay inequity by giving candidates and employees information to negotiate fair compensation.
An employee who works 50 hours in a week and earns $20/hour (non-exempt) must be paid overtime at what rate for the 10 overtime hours under FLSA?
Answer: $30.00 per hour
FLSA requires non-exempt employees to be paid 1.5 times their regular rate for all hours over 40; $20 × 1.5 = $30 per overtime hour.